Tirupati: The remand report of the accused in the ghee adulteration case has uncovered significant findings from the Special Investigation Team (SIT) led by the Central Bureau of Investigation (CBI). The SIT arrested four individuals on Sunday night, exposing large-scale fraud, document forgery and financial misappropriation by AR Dairy, the primary supplier implicated in the scandal.

The controversy arose when devotees and temple authorities expressed concerns about the quality of ghee used in the renowned Tirupati laddus. In response, the TTD issued warnings to all suppliers, insisting on strict adherence to quality standards. While other suppliers complied, AR Dairy allegedly continued providing substandard ghee, prompting further investigation.

In March 2024, TTD floated an e-tender for the supply of 10 lakh kilograms of cow ghee, limiting eligibility to suppliers within a 1,500 km radius of Tirumala.

The tender was finalised on May 8, 2024, awarding the contract to AR Dairy at Rs.319.80 per kilogram. However, officials soon questioned the feasibility of supplying pure cow ghee at this price, leading to a comprehensive probe into the company’s operations.

Between June 12 and July 4, 2024, AR Dairy delivered four consignments of ghee, all of which initially cleared TTD’s internal testing. However, growing doubts led TTD to collect additional samples from four more consignments on July 6 and July 12, 2024, which were sent to the NDDB CALF Lab in Gujarat, a reputed dairy testing facility. The results, received on July 16 and July 23, 2024, confirmed that the ghee was adulterated with vegetable and animal fats, rendering it unfit for human consumption.

Further investigations revealed a deep-rooted fraud involving falsified records of their capacity of milk fat procurement and butter and ghee production. These fraudulent figures were incorporated into the company’s Food Safety and Standards Authority of India (FSSAI) returns, allowing it to fraudulently obtain the TTD contract.

A financial review exposed collusion among multiple entities. On October 21, 2023, AR Dairy received Rs.70 lakh from Bhole Baba Organic Dairy — Rs 32 lakh for the 1,500 km category and Rs.38 lakh for the national category—indicating coordinated bid manipulation.

Additionally, the Rs 51 lakh Earnest Money Deposit (EMD) required for tender participation was transferred from Bhole Baba Organic Dairy to AR Dairy’s bank account on March 11, 2024. Another Rs 29 lakh was deposited on May 21, 2024, further highlighting financial irregularities. Reports suggest that AR Dairy was promised a commission of Rs.2.75 to Rs.3 per kilogram of ghee supplied.

The investigation identified Apurva Vinaykanth Chavda, CEO of Vyshnavi Dairy, as a key facilitator in the fraud. Chavda acted as a commission agent for multiple dairies, orchestrating the falsification of procurement records. Pomil Jain and Vipin Jain, directors of Vyshnavi Dairy played pivotal roles in document manipulation and employed commission agents to ensure AR Dairy secured the TTD contract.

As the investigation progressed, several accused individuals attempted to evade arrest by going underground. Many switched off their mobile phones, procured new numbers, and attempted to destroy digital evidence. Key employees either resigned abruptly or refused to cooperate with authorities, further complicating the probe.

A review of past transactions revealed that Bhole Baba Organic Dairy had been supplying ghee to TTD since 2019. Initially, the company provided ghee in tin containers at Rs 291 per kilogram. However, quality concerns emerged, leading to TTD rejecting Bhole Baba’s ghee tankers in 2022 after they failed in-house quality tests. Despite this, Bhole Baba remained involved in the supply chain through Vyshnavi Dairy, which acted as a front to secure future contracts.